Different methods of determining the market value of Belarusian banks
Keywords:
discounted cash flow, income approach, cost approach, the method of future profits (goodwill), capitalization method, the method of analog, multiple method, the method of transactions, the method of net assets, the comparative approach, the value of the bankAbstract
The purpose of the paper is to explore the modern world and domestic banking business valuation approaches and to identify the model that is most suitable for Belarus. Object of research is the process of determining the market price of a commercial bank in Belarus. Subject of research is the methods of valuation of the bank according to the modern Belarusian conditions. The relevance of this work is high, as due to an increase in competition in the banking sector and the deteriorating economic situation in many international banks frequent mergers and acquisitions in the banking sector are expected. These transactions require the valuation of fair true prices for commercial banks.
References
- Valuation of the objects of civil rights in the Republic of Belarus : Regulations to the Decree No. 615 of 13 Oct., 2006. The National Legal Internet Portal of the Republic of Belarus. 2017. URL: http://www.pravo.by/document/?guid=3871&p0=P30600615 (date of access: 01.09.2017) (in Russ.).
- Kovalev M., Vasileuski A. [Methods for assessing the value of a bank]. Bull. Assoc. Belarus. banks. 2014. No. 19/20. P. 13–30 (in Russ.).
- Vasileuski A. [Hybrid method of valuation and its application for analysis of the effectiveness of sales of Belarusian banks]. Bank bull. mag. 2015. No. 3. P. 57– 68 (in Russ.).
- Reshotkin K. A. [Estimation of the market value of a commercial bank]. Moscow : TEIS, 2002 (in Russ.).
- Golovina G. P. [Estimation of the value of a commercial bank on the basis of a revenue approach]. Bull. Samara State Univ. 2010. No. 7. P. 21–26 (in Russ.).
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